For new homebuyers and sellers who want to add value, a warranty can help. However, buyers and sellers should do their research to find a reliable company that only uses reputable contractors and will actually pay for repairs when they are needed.
Despite the cost, millions of homeowners think home warranties are worth it. Here are the advantages they provide:
Peace of Mind
Home warranties offer the peace of mind that comes with knowing your home appliances and systems are covered. For a small yearly premium and day-of service fee, you can avoid the stress and expense of unexpected repair bills.
It also means you don’t have to deplete your emergency savings when something breaks down. Instead, you can use that money for other expenses or invest it to earn more income.
For new homeowners, a home warranty gives them the comfort of knowing that if they can’t fix an issue themselves, there’s a skilled technician available to help. That can be a big relief, especially for older people who may be less handy or unfamiliar with their new home’s systems and appliances. A home warranty can also save them the cost of hiring a handyman to do the job. It can be an investment that’s well worth the price of peace of mind. For many, it’s a way to avoid expensive repairs and keep their home in good condition.
Unlimited Service Calls
Unlike home insurance, which pays out to cover damages or injuries, the purpose of a home warranty is to help homeowners protect their budgets from unexpected repair bills. Especially for first-time homeowners or those who aren’t handy, it can be helpful to know that a call out for a broken dishwasher, air conditioner or fridge will only deplete a fraction of the emergency fund they have saved up.
However, while home warranties can provide peace of mind and a buffer against expensive unforeseen repairs, they’re not without their drawbacks. For example, many home warranty companies have a deductible that’s paid each time you file a claim, which can range from $60-$125. Moreover, some users report difficulty with submitting a claim or getting in touch with company representatives, citing long telephone hold times and technical issues. This makes it important to do your homework before buying a home warranty. You’ll want to compare each company’s monthly payments, deductibles and payout limits.
Easy Access to Service Providers
A home warranty can be a valuable addition to any homeowner’s toolbox, whether they are buying, selling or living in their homes. But it’s important to consider the costs and benefits of a home warranty before making a decision to buy or not.
Home warranties offer peace of mind and financial stability to homeowners. They can protect against the high cost of unexpected repairs that can occur due to normal wear and tear or inclement weather.
In addition, home warranties can provide a network of professional service providers to help make the process of getting the repairs you need simple and convenient. Having access to a large list of professional contractors can save you time and money in the long run as you don’t have to read plumber reviews or ask your neighbors for referrals. And, most importantly, a home warranty can keep you from depleting your emergency fund to cover the cost of an unplanned repair.
A Just-In-Case Budget
Whether you’re a first-time buyer or an owner who wants to protect their investment, home warranties are one of those “just in case” expenses worth considering. These service contracts typically cost less than buying new appliances and systems and offer peace of mind when things break down.
The home warranty company will handle all the details of arranging and scheduling repairs, which can save homeowners time from collecting contractor quotes or tinkering with repair projects themselves. It can also save money on unexpected repair bills that might otherwise drain a household budget or delay needed repairs to other parts of the property.
However, it’s important for both buyers and sellers to do their research on home warranty companies to find out home warranty costs, to ensure they are reputable, have a solid track record, and a policy that meets the needs of the family. Consumer reviews, state attorney general’s websites, and the Better Business Bureau can all be useful resources. Also, when choosing a home warranty plan, make sure it covers everything that could potentially need to be covered.